<p>The change&nbsp;could result in the Dole and possibly the State Pension&nbsp;increasing year on year in line with the rate of inflation.</p>

<p>The system&nbsp;has been introduced in many EU countries such as Norway, Sweden and Belgium.</p>

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<p>However, the <a href="http://www.independent.ie/irish-news/politics/dole-payments-to-increase-in-line-with-inflation-under-new-proposals-leo-varadkar-34901672.html" target="_blank">Independent</a> reports the cost to be &euro;1.2 billion over four years so implementation of the proposal will be challenging.</p>

<p>Minister&nbsp;Varadkar detailed his plan at the <a href="http://www.welfare.ie/en/pressoffice/Pages/sp210716.aspx" target="_blank">MacGill summer school</a> in Glenties.</p>

<p style="line-height: 20.8px;">&quot;Social transfers are an effective means of reducing poverty, inequality and alienation,&quot; he said. &quot;It is important to protect the value of these payments now and into the future&#39;, he said.</p>

<blockquote>
<p><span style="line-height: 1.6;">&quot;I believe this can best be done by indexing weekly social welfare payments to the cost of living or to average earnings, and enshrining that principle in legislation.&nbsp;This will ensure that people who depend on these payments never again see their standard of living eroded or falling behind society in general.&nbsp;</span></p>
</blockquote>

<p>The Minister said the he is&nbsp;confident that he can secure cross-party support for this legislation&nbsp;in the lifetime of this government.</p>

<p>However, an increase in child benefit will not be inlcuded.</p>

<blockquote>
<p>&quot;A &euro;5 per week increase in child benefit across the board would cost &euro;60 million a year.&nbsp; The same amount of money invested in reducing the cost of school, childcare or healthcare, would in my view go a lot further,&quot; he said.</p>
</blockquote>

<p>Dr. Varadker also proposed an increase in the minimum wage to &euro;10.50 by the end of the decade.</p>
